About the industry

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu
(Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). The writings
talk in terms of pooling of resources that could be re-distributed in times of calamities
such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day
insurance. Ancient Indian history has preserved the earliest traces of insurance in the
form of marine trade loans and carriers’ contracts. Insurance in India has evolved over
time heavily drawing from other countries, England in particular.

1818 saw the advent of life insurance business in India with the establishment of the
Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In
1829, the Madras Equitable had begun transacting life insurance business in the Madras
Presidency. 1870 saw the enactment of the British Insurance Act and in the last three
decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and
Empire of India (1897) were started in the Bombay Residency. This era, however, was
dominated by foreign insurance offices which did good business in India, namely Albert
Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian
offices were up for hard competition from the foreign companies.

In 1914, the Government of India started publishing returns of Insurance Companies

in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure
to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to
enable the Government to collect statistical information about both life and non-life
business transacted in India by Indian and foreign insurers including provident insurance
societies. In 1938, with a view to protecting the interest of the Insurance public, the
earlier legislation was consolidated and amended by the Insurance Act, 1938 with
comprehensive provisions for effective control over the activities of insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there
were a large number of insurance companies and the level of competition was high.

1
There were also allegations of unfair trade practices. The Government of India, therefore,
decided to nationalize insurance business.

An Ordinance was issued on 19th January, 1956 nationalizing the Life Insurance
sector and Life Insurance Corporation came into existence in the same year. The LIC
absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian
and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance
sector was reopened to the private sector.

The history of general insurance dates back to the Industrial Revolution in the west
and the consequent growth of sea-faring trade and commerce in the 17th century. It came
to India as a legacy of British occupation. General Insurance in India has its roots in the
establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the
British. In 1907, the Indian Mercantile Insurance Ltd was set up. This was the first
company to transact all classes of general insurance business.
1957 saw the formation of the General Insurance Council, a wing of the Insurance
Association of India. The General Insurance Council framed a code of conduct for
ensuring fair conduct and sound business practices.

In 1968, the Insurance Act was amended to regulate investments and set minimum
solvency margins. The Tariff Advisory Committee was also set up then.

In 1972 with the passing of the General Insurance Business (Nationalization) Act,
general insurance business was nationalized with effect from 1st January, 1973. 107
insurers were amalgamated and grouped into four companies, namely National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company
Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of
India was incorporated as a company in 1971 and it commence business on January 1sst
1973.

2
 This millennium has seen insurance come a full circle in a journey extending to nearly
200 years. The process of re-opening of the sector had begun in the early 1990s and the
last decade and more has seen it been opened up substantially. In 1993, the Government
set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to
propose recommendations for reforms in the insurance sector. The objective was to
complement the reforms initiated in the financial sector. The committee submitted its
report in 1994 wherein, among other things, it recommended that the private sector be
permitted to enter the insurance industry. They stated that foreign companies be allowed
to enter by floating Indian companies, preferably a joint venture with Indian partners.

Following the recommendations of the Malhotra Committee report, in 1999, the

Insurance Regulatory and Development Authority (IRDA) was constituted as an
autonomous body to regulate and develop the insurance industry. The IRDA was
incorporated as a statutory body in April, 2000. The key objectives of the IRDA include
promotion of competition so as to enhance customer satisfaction through increased
consumer choice and lower premiums, while ensuring the financial security of the
insurance market.

The IRDA opened up the market in August 2000 with the invitation for application for
registrations. Foreign companies were allowed ownership of up to 26%. The Authority
has the power to frame regulations under Section 114A of the Insurance Act, 1938 and
has from 2000 onwards framed various regulations ranging from registration of
companies for carrying on insurance business to protection of policyholders’ interests.

In December, 2000, the subsidiaries of the General Insurance Corporation of India

were restructured as independent companies and at the same time GIC was converted into
a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in
July, 2002.

Today there are 14 general insurance companies including the ECGC and Agriculture
Insurance Corporation of India and 14 life insurance companies operating in the country.

3
 The insurance sector is a colossal one and is growing at a speedy rate of 15-20%.
Together with banking services, insurance services add about 7% to the country’s GDP.
A well-developed and evolved insurance sector is a boon for economic development as it
provides long- term funds for infrastructure development at the same time strengthening
the risk taking ability of the country.

4
 About the company

Stock broking businesses in the UK. Kotak group was established in 1985. Kotak
group entered into the life insurance business in 2001. Kotak mahindra old mutual life
insurance ltd is a joint venture between Kotak mahindra (24%) old mutual is a world
class international financial services company. It was established in South Africa before
160 years.
Old mutual is the largest financial services business in South Africa, through its life
insurance, asset management, banking and general insurance operations. The company
serves 4 million life insurance policy holders and employs over 13000 South Africans in
its local operations.
In the USA old mutual is one of the top ten fixed annuity businesses offering an array of
specialist asset management businesses the company’s US life business recorded sales of
$4 billion at the end of 2002 operations in the United Kingdom are focused on wealth
management through Gerard as one of the leading private client.
The old mutual group has the ability to cater for a variety of consumer segment and
offers a comprehensive and innovative range of products for all income groups.

The products of Kotak life insurance

1. Kotak protection plan
• Kotak loan protection plan
• Kotak term / preferred plan
• Kotak external life plans

2. Savings and investment plan

• Kotak single invest
• Kotak smart advantage plan
• Kotak safe investment plan
• Kotak platinum advantage plan
3. Retirement plan

5
 • Kotak second innings plan
• Kotak secure retirement plan
• Kotak retirement income plan (unit linked)
• Kotak long life secure plus
• Kotak long life wealth plus
• Kotak retirement income plan
4. Child plan
• Kotak head start plan
• Kotak child advantage plan.

Child plan
Kotak Life Insurance’s children plans are one of the best in its category. Kotak
Headstart Child Plan is a unique child plan which will help you financially secure the
future of your children by providing good returns as well as protecting him/her against
any unforeseen circumstances.
As parent you have always wanted the best for your children. Lack of financial resources
should not come in the way of your child’s dreams, goals and aspirations. Children plans
are uniquely designed products to help you save in a systematic manner for a brighter
future for your beloved children
Head start plan
It is very important to plan your finances carefully so that your children can
benefit. If you invest in the right children plan, you will be able to provide the required
financial support to your child, whenever he or she needs it the most.
Children plans are all the more important when you start considering increasing
costs due to the effect of inflation. For instance, professional courses such as
management, medicine and engineering are already very expensive; these are likely to be
far more costly when your child grows up. So, you have to factor in inflation into all your
calculations. One of the smartest ways to beat inflation and create financial stability
irrespective of the career your children choose for themselves is to start investing as early
as possible in children plans.

6
Advantages:
 Choice of 2 plan variants
 Maximizes wealth while providing protection
 Joint Life option
 Save for 2 children with one plan
 Additional bonus units
 Flexible withdrawals
These are specially tailored, cost effective plans that aim to give your children the
financial means to pursue his or her dreams - and to live them

Investment Objective Your risk - Equity Debt

option return (including
profile money
market
instruments)
Opportunities Aims to maximize Aggressive 75-100% 0-25%
fund opportunity for long term
capital growth by holding
significant portion in a
diversified and flexible
mix of large/medium sized
stocks
Aggressive Aims for high level of Aggressive 60-100% 0%-40%
fund capital growth by holding
a significant portion in
Dynamic large sized company 40-80% 20-60%
growth fund equities
Dynamic Aims for moderate growth Moderate 30-60% 40-70%
balanced fund by holding a diversified
mix of equities and fixed
interest instruments
Dynamic floor Aims to provide stable, Cautious 0-75% 25-100%
fund long-term inflation beating
growth over medium to
long term and defend
capital against short term

7
 capital shocks
Dynamic bond Aims to preserve capital Conservative - 100%
fund and minimize downside
risk with investment in
debt and government
instruments
Dynamic Aims to protect your Conservative - 100%
money market capital and not have
fund # downside risks
Note: investments in money market instruments will not exceed 40%, except for money market fund
# Available only in the last policy year.
In short, you can select over time which funds you would like to be in, based on your
time horizon and views on the market. Or you can let us manage the risk more actively on
your behalf, by investing in the dynamic floor fund.

1) Headstart assure wealth

Bring alive your child’s dreams. Start preparing.
Every child is different. Each has tier own set of dreams and aspirations. As a parent.
You would like to provide your child with all the building blocks that could develop his
or her potential to the fullest. This could mean extra coaching or tuition for talented
children, special training or equipment for natural athletes or professional training for
born singers. Today nothing is certain and you have to be prepared.
Introducing kotak headstart assure wealth- a specially tailored, cot effective plan that
aims to give your child the financial means to pursue his or her dreams- and to live them.
Benefits Details
Saving 2 children Hassle- free cost effective saving through a single plan for one
or two children.
Joint life option Both parents can be covered where sum assured is paid on the
available ^ (primary & second death. Boost the accumulation amount at maturity for
joint life insured) your children, where you may already have insurance to cover
them along the way.
Survival units Enjoy additional unit allocation for long-term investment for
your child. Extra units of 1%, 1.5% and 2% of the fund will
be allocated at the end of policy year 10, 15 and 20
respectively, provided all premiums are paid up to date and

8
 the policy has not yet reached maturity.
Top-up premiums Increase investments for your child’s future if you have
surplus money. Invest up to 25% of the cumulative premiums
paid up to that date.
Partial withdrawals Available to meet the child’s expenses along the way, from
year 4 onwards. Early withdrawals charges fall away at the
end of year 6, allowing you flexible access to your money,
subject to a minimum fund balance of Rs. 25000. Withdrawals
must be made from the qualifying top –up accounts first.
Withdrawals will be allowed only if the premiums for the first
three years have been paid in full.
Switching You may switch or change the fund options to maximize
returns from the market. Switching between main account and
top-up accounts is not allowed.
Automatic cover In case you miss your premium payment, this facility will
maintenance ensure that whilst you have adequate funds in the policy, your
insurance cover remains in force. This facility can be availed
after payment of premium for 3 completed policy years. All
rider benefits cease to apply. The policy will be terminated by
paying the applicable surrender value if it is not revived
within two years from the due date of first unpaid premium or
the policy holder does not express in writing to continue the
policy in ACM mode. If the fund value reaches a level equal
to one years premium after deduction of applicable policy
charges, the policy terminates and fund value will be payable.
Convenient premium Pay your premiums annually, half yearly, quarterly or
payment modes monthly
Free look period Offers the option of returning your policy document within 15
days from the date of receipt of the policy if you are not
satisfied with the terms and conditions of the plan. The
amount refunded would be the premium paid after
adjustments for expenses for medical examination, stamp duty
and proportionate risk premium for the period of cover.

9
How to apply for this plan?
Step 1: decide the amount you will save regularly to secure your child’s future, i.e. the
regular annual premium.
Step 2: decide the term of the policy depending on goals for your child (higher education,
marriage, etc.) that you have in mind.
Step 3: select your fund options.
Step 4: choose the optional benefits

Eligibility
Entry age of life insured: min - 18 years
Max – 60 years
Entry age of beneficiary: Min – 0 years (younger beneficiary)
Max – 17 years (older beneficiary)
Term Min – greater of [10 years or 18 less younger children
age (as on last birthday)]
Max – 25 years
Limited premium payment term: 3 – 10 years
Maturity age : Min 28 years, Max 70 years, for the policyholder
Min – 18 years (younger beneficiary)
Max 42 years (older beneficiary)
Regular annual premium : Min – Rs. 15,000
Limited premium payment : Min – Rs.25, 000 p.a. for payment term of 4 – 10 years
Min – Rs. 50,000 p.a. for payment term of 3 years
Premium allocation charge
There is an initial advice and distribution charge related to policy issue that is a
percentage of the premium received. The premium allocation charges are applicable as
per the following table:

Policy term less than 15 years

10
Annual Below 25000 to Above 1,50,000
premium 25,000 150000
(Rs.)
Year 1 32.00% 28.00% 19.50%
Year 2 14.00% 9.00% 7.00%
year 3 7.00% 5.00% 4.00%
Year 4 – 10 1.00% 1.00% 1.00%

Policy term of 15 years & above

Annual Below 25000 to Above 1,50,000
premium 25,000 150000
(Rs.)
Year 1 36.00% 31.50% 21.00%
Year 2 14.00% 9.00% 7.00%
year 3 7.00% 5.00% 4.00%
Year 4 – 10 1.00% 1.00% 1.00%

2) Headstart future protect

Your children are your joy, your pride and your world. And you strive to give your little
one(s) the very best in life. You would like to provide your children with all the
opportunities that could give them the extra edge over others. For this, you would require
an investment and protection package that is specially designed to help you plan wisely
for a financially secure and comfortable tomorrow, no matter what the uncertainty of life.
Introducing, kotak headstart future protect, a unit-linked dual benefit plan to help secure
your children’s future financial needs and ensure that plans do nt awry, given you may
not always be there to help.

Benefits
Benefits Details
Saving 2 children Hassle- free cost effective saving through a single plan for one
or two children.
Joint life option Both parents can be covered where sum assured is paid on the

11
available ^ (primary & second death. Boost the accumulation amount at maturity for
joint life insured) your children, where you may already have insurance to cover
them along the way.
Survival units Enjoy additional unit allocation for long-term investment for
your child. Extra units of 1%, 1.5% and 2% of the fund will
be allocated at the end of policy year 10, 15 and 20
respectively, provided all premiums are paid up to date and
the policy has not yet reached maturity.
Top-up premiums Increase investments for your child’s future if you have
surplus money. Invest up to 25% of the cumulative premiums
paid up to that date.
Partial withdrawals Available to meet the child’s expenses along the way, from
year 4 onwards. Early withdrawals charges fall away at the
end of year 6, allowing you flexible access to your money,
subject to a minimum fund balance of Rs. 25000. Withdrawals
must be made from the qualifying top –up accounts first.
Withdrawals will be allowed only if the premiums for the first
three years have been paid in full.
Switching You may switch or change the fund options to maximize
returns from the market. Switching between main account and
top-up accounts is not allowed.
Automatic cover In case you miss your premium payment, this facility will
maintenance ensure that whilst you have adequate funds in the policy, your
insurance cover remains in force. This facility can be availed
after payment of premium for 3 completed policy years. All
rider benefits cease to apply. The policy will be terminated by
paying the applicable surrender value if it is not revived
within two years from the due date of first unpaid premium or
the policy holder does not express in writing to continue the
policy in ACM mode. If the fund value reaches a level equal
to one years premium after deduction of applicable policy
charges, the policy terminates and fund value will be payable.
Convenient premium Pay your premiums annually, half yearly, quarterly or

12
payment modes monthly
Free look period Offers the option of returning your policy document within 15
days from the date of receipt of the policy if you are not
satisfied with the terms and conditions of the plan. The
amount refunded would be the premium paid after
adjustments for expenses for medical examination, stamp duty
and proportionate risk premium for the period of cover.

Eligibility
Entry age of life insured:
Entry age of beneficiary:
Term
Limited premium payment term: 3 – 10 years
Maturity age
Regular annual premium
Limited premium payment
min - 18 years
Max – 60 years
Min – 0 years (younger beneficiary)
Max – 17 years (older beneficiary)
Min – greater of [10 years or 18 less younger children
age (as on last birthday)]
Max – 25 years
: Min 28 years, Max 70 years, for the policyholder
Min – 18 years (younger beneficiary)
Max 42 years (older beneficiary)
: Min – Rs. 15,000
: Min – Rs.25, 000 p.a. for payment term of 4 – 10 years
Min – Rs. 50,000 p.a. for payment term of 3 years

Premium allocation charge

There is an initial advice and distribution charge related to policy issue that is a
percentage of the premium received. The premium allocation charges are applicable as
per the following table:
Policy term less than 15 years
Annual Below 25000 to Above 1,50,000
premium 25,000 150000

13
(Rs.)
Year 1 32.00% 28.00% 19.50%
Year 2 14.00% 9.00% 7.00%
year 3 7.00% 5.00% 4.00%
Year 4 – 10 1.00% 1.00% 1.00%

Policy term of 15 years & above

Annual Below 25000 to Above 1,50,000
premium 25,000 150000
(Rs.)
Year 1 36.00% 31.50% 21.00%
Year 2 14.00% 9.00% 7.00%
year 3 7.00% 5.00% 4.00%
Year 4 – 10 1.00% 1.00% 1.00%

3) child advantage plan

Child advantage plan provides an effective investment avenue for planning your
children’s future and ensuring that financial concerns do not mar the process of realizing
their dreams.
It is a systematic investment plan wherein you invest fixed amounts each year/ half
year/quarter or month. The unique design of plan allows you to structure it as per your
needs. The optional riders that offer waiver of premiums help secure your child’s if
something unfortunate were to happen to you.
Why should you invest in this plan?
This plan is ideal for you as it encourages you to save systematically and create a
sufficiently large corpus for your child’s dreams, be it higher education, setting up a
business or a wedding.

14
Key features
 bonus
The premium paid by you net of charges are credited in the accumulation account and
invested as per IRDA norms. Being a participating plan, the bonuses declared are
credited to this account. Our team of prudent investment managers will ensure that
your money continues to work hard and get you compounding returns, year after year.
 Waiver of premium
To ensure that the policy remains in force in case of any unforeseen event, two
optional riders: Kotak Life Guardian Benefit (LGB) and Kotak Accidental Disability
Guardian Benefit (AGDB) may be attached. The premium for the policy will be
waived in case of death of the proposer (premium payer) or in case of his permanent
disability, if the respective riders are attached to the base plan.
Thus, attaching the riders gives you the added comfort that even if something were to
happen to you, your child’s future is secured.
 Maturity benefit
The higher of the basic sum assured or the accumulation account will be paid on
maturity, if all premiums have been paid on time and as scheduled.

 Death of life insured

• If the policy has been in force for five years or if the life insured is at least
18 old, the beneficiary will receive either the sum assured or accumulation
account whichever is higher, as on the date of death.
• If the death occurs within five years from commencement of the policy
and if the insured is less than 18 years old, the death benefit would be
either the total of all premiums paid (excluding rider premiums) so far or
the surrender value at that time, whichever is higher.
 Other features
• The riders offered under this are:

15
 Kotak Life Guardian Benefit (LGB): remaining premiums paid on your
behalf in case of death
Kotak Accidental Disability Guardian Benefit (ADGB): remaining
premiums paid on your behalf in case of disability
• You can avail of a loan facility from Kotak life insurance against your
policy after the policy has been in force for at least 3 policy years.
Advantages
• Efficient, long term investment for your child
• Earn bonuses on your investments
• Waiver of premium option to give you added peace of mind
Tax benefit
Section 80C, 10(10D) of income tax act, 1961 would apply. Tax benefits are subject to
change in tax laws.
Eligibility
Entry age for the life to be insured Min – 0 years, Max – 17 years
Term Min – 10 years, Max – 30 years
Premium Min – Rs. 4000 annually
Sum assured Max – Rs.25,00,000
Premium payment mode Yearly, half-yearly, quarterly & monthly

Terms and conditions

Grace period: there is a grace period of 30 days from due date for payment of premium
for the yearly and half-yearly mode, and 15 days for the monthly mode.
Lapses: where the premiums for the first three policy years are not paid within the grace
period the policy together with the rider benefits, shall lapse from the due date of the
unpaid premium by making payment of the premiums in arrears along with interest on
such terms and conditions as fixed by company.
Paid-up policy: on receipt of at least 3 years premiums and after completion of 3 full
policy years, you can elect to stop paying future premiums and make the policy paid up
by intimating the company in writing. The rider benefits will cease. The sum assured will
be reduced in proportion to the number of premiums paid to the number of premiums
payable.

16
Automatic cover maintenance (ACM): in case you miss some premium payment, the
ACM facility ensures the policy remains in force. This facility is available provided
premiums for first three policy years have been paid in full. All the rider benefits cease.
Surrender: on completion of three policy years, the policy acquires a guaranteed
surrender value provided all due premiums have been paid on time. The guaranteed
surrender value will be 30% of all premiums paid to date, excluding the first year’s
premium and extra premiums and rider premiums, if any. The value of bonus interest will
also be included in the surrender value. The company may consider paying a special
surrender value, which will not be less than the guaranteed surrender value as stated
above.
Free look period: the policy holder is offered 15 days free look period, from the date of
receipt of the policy wherein the policy holder may choose to return the policy within 15
days of receipt if he is not agreeable with any of the terms and conditions of the plan.
Should he chooses to return the policy, he/she shall be entitled to refund of the premium
paid after adjustment for expenses on medical examination, stamp duty and proportionate
risk premium for the period of cover.
General exclusion: in the event of the life insured committing suicide within one year of
the date of issue of the policy, the policy shall be void and no benefits shall be payable.

Objectives of the study

1. To study about the child plan of Kotak life insurance company

2. To know about brand awareness of Kotak life insurance customers preference
about Kotak life insurance.

Limitations:
 The sample size is small and no accurate results can be produced.
 The customers answer may not be reliable at times.

17
 Research methodology
Research design:
The research design used is descriptive type.

Primary data:
The data collected from customer, agents and non agents using questionnaire and
interview method and details collected from the company.

Secondary data:
The data from magazine, book and brochures etc.,

Sample size:

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 The sample size used in my project is 25. That is 15 from customers, 5 from agents and
5 from non agents

Sample design:
The sampling design used is convenient sampling

Tools used:
The tools used in the project are

• Percentage table
• Cross tabs
• Chi square
• ANOVA
• correlation

Table 1
Table showing children age wise classification of the respondents

19
 Frequency percent
9 months to 3 4 26.7
yrs
4 yrs to 8 yrs 7 46.7

9 to 15 yrs 1 6.7

Above 15 yrs 3 20.0

Total 15 100.0

Inference:
The above table shows that majority 46.7 % of respondents are taken child plan
at age of 4 to 8 yrs.

Chart 1

Chart showing the respondent’s children age at the time of taking the child plan

20
 Frequency

7
6
5
4
3
2
1
0
9 months to 4 yrs to 8 yrs 9 to 15 yrs Above 15 yrs
3 yrs

Table 2

Table showing policy wise classification of respondents

21
 Frequencies percent
Headstart plan 8 53.3

Child advantage 7 46.7

plan
Total 15 100

Inference:
The above table shows that majority 53.3% of the respondents are chosen the
Headstart plan.

Chart 2

Chart showing the policy wise classification of the respondents

22
 Chart 2

Frequencies

8.2 8
8
7.8
7.6
members

7.4
7.2 7
7
6.8
6.6
6.4
policy

Headstart plan Child advantage plan

Table 3

Table showing the comparison between the no. of children’s of the respondents and
the policy chosen

23
 Child’s at Less than Percent Greater than Percent Total
which policy 15 yrs 15 yrs
taken/length of
policy
9 months to 3 1 25 3 27.27 4
yrs
4 to 8 yrs 3 75 4 36.36 7
9 to 15 yrs 0 0 1 9.09 1
Above 15 yrs 0 0 3 27.27 3
Total 4 100 11 100 15

Inference:
The table shows that majority 75% of the respondents whose child’s age is 4 to 8
yrs have chosen their policy term less than 15 yrs. And majority 36.36% of the
respondents whose child’s age is 4 to 8 yrs have chosen their policy term greater than 15
yrs.

Chart 3
Chart showing comparison between the no. of children’s of the respondents and the
policy chosen

24
 4.5
4
3.5
children's age

3
2.5
2
1.5
1
0.5
0
9 months 4 to 8 yrs 9 to 15 yrs Above 15
to 3 yrs yrs
length of the policy

Less than 15 yrs Greater than 15 yrs

Table 4

Table showing association between education qualification and reference to Kotak

Null hypothesis:
There is no significant association between the education qualification and
reference to Kotak.

25
 Test Statistics

education come to know

qualification about Kotak
Chi-
Square(a,b) 5.000 6.667

Df
3 4

Asymp. Sig.
.172 .155

Level of significance 0.05

Inference:
The calculated chi square value is (.155) is greater than the level of significance
(0.05). So the null hypothesis is rejected. Hence there is association between education
qualifications and reference to Kotak.

Table 5
Table showing association between occupation and period of payment of premium

Null hypothesis:
There is no significant association between the occupation and period of
payment of premium.
Test Statistics

26
 Level of significance 0.05

Period of
payment of
the premium
occupation amount
Chi-Square(a)
6.600 2.333

Df
3 3

Asymp. Sig.
.086 .506

Inference:
The calculated chi square value is (.506) is greater than the level of significance
(0.05). So the null hypothesis is rejected. Hence there is association between occupation
and period of payment of the premium amount.

Table 6
Table showing the difference between the reference to Kotak and their satisfaction
level

27
Null hypothesis:
There is no significant difference between reference to Kotak and their satisfaction
level

ANOVA

Sum of
Squares df Mean Square F Sig.
Between Groups
.719 4 .180 .812 .546

Within Groups
2.214 10 .221

Total
2.933 14

Level of significance 0.05

Inference:
The calculated F ratio of one way ANOVA between groups and within groups is
0.812 and the calculated significance value is (0.546) greater than the level of
significance (0.05). Hence the null hypothesis is rejected, so there is difference between
the reference to Kotak and their satisfaction level.

Table 7

Table showing the difference between the Kotak compared to other companies and
Kotak satisfaction level towards other companies

28
Null hypothesis:
There is no difference between the Kotak compared to other companies and Kotak
satisfaction level towards other companies

ANOVA

Sum of
Squares df Mean Square F Sig.
Between Groups .967 3 .322 1.802 .205
Within Groups 1.967 11 .179
Total 2.933 14

Level of significance 0.05

Inference:
The calculated F ratio of one way ANOVA between groups and within groups
is 1.802 and the calculated significance value is (0.205) greater than the level of
significance (0.05). Hence the null hypothesis is rejected, so there is difference between
the Kotak compared to other companies and Kotak satisfaction level towards other
companies

Table 8
Table showing relationship between income and period of payment of the premium
amount

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 Correlation

Period of
payment of
the
premium
income amount
income Pearson Correlation 1 -.335
Sig. (2-tailed) .222
N 15 15
pay the premium amount Pearson Correlation -.335 1
Sig. (2-tailed) .222
N 15 15

Inference:
It is concluded that there is negative correlation between the income level and period
of payment of premium amount.

Findings
Frequencies:
• Majority 46.7 % of respondents are taken child plan at age of 4 to 8 yrs.

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 • Majority 53.3% of the respondents are chosen the Headstart plan.
Cross tabs:
• Majority 75% of the respondents whose child’s age is 4 to 8 yrs have chosen their
policy term less than 15 yrs. And majority 36.36% of the respondents whose
child’s age is 4 to 8 yrs have chosen their policy term greater than 15 yrs.
Chi-square:
• The calculated chi square value is (.155) is greater than the level of significance
(0.05). So the null hypothesis is rejected. Hence there is association between
education qualifications and reference to Kotak.
• The calculated chi square value is (.506) is greater than the level of significance
(0.05). So the null hypothesis is rejected. Hence there is association between
occupation and period of payment of the premium amount.
ANOVA:
• The calculated F ratio of one way ANOVA between groups and within groups is
0.812 and the calculated significance value is (0.546) greater than the level of
significance (0.05). Hence the null hypothesis is rejected, so there is difference
between the reference to Kotak and their satisfaction level.
• The calculated F ratio of one way ANOVA between groups and within groups is
1.802 and the calculated significance value is (0.205) greater than the level of
significance (0.05). Hence the null hypothesis is rejected, so there is difference
between the Kotak compared to other companies and Kotak satisfaction level
towards other companies

Correlation:
• There is negative correlation between the income level and period of
payment of premium amount.
Agents:
• They can make their sales and achieve their targets.
• Their customers are satisfied.

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 • Premium payment from the customers is regular.
• Mode of payment is also easier to handle.
• The agents feel pressure is less when compared to other companies.
Non agents:
• They feel comfortable with their company products.
• Commission is not so high as compared to their company.
• The service given to the Kotak customers is less when compared to their
company. So customers feel unsatisfied and not able to achieve targets.
• They didn’t have much knowledge on Kotak products. So they didn’t
shift from their company to Kotak.

Suggestions
Based on the findings the important suggestions given to Kotak life insurance:
 Most of their customers take child plan only at 4 to 8 yrs of their child, so
they should motivate their customers to take child plan from 9 months
onwards in order to benefit their child and it is also profitable to the company.

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  The company is limited to their products in child plan when compared to
other companies though their customers are satisfied, they can increase the
numbers of products to attract more customers.
 There is lack of knowledge about the company, so they can give more
advertisements to improve the knowledge among the public.
 The non agents feel service is not good, so the service provided to employees
should be improved.
 The non agents feel commission is not as good as their company that must be
made attractive.

Conclusion

The insurance is an important in order to reduce the future risk. The child plan helps
to protect their children future. They can save amount for their future studies and their
career development. It helps parents in reducing burden at their further studies. This

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policy helps them to make future best. It not only helps in future studies but also as life
guardian at the time parent death and also as accidental disability benefit.

Bibliography
Books
Principles of risk management and insurance
- George E. Rejda

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Journals
Kotak life insurance child plan brochures
Website
www.kotaklifeinsurance.com

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